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Reasons for slow economic recovery

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  • Description

    What's to blame for sluggish growth?

  • Duration 2:25
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The US economy has never been so sluggish this long into a recovery.

Chief national correspondent Jim Angle takes a look at some of the reasons.

Economists -- little doubt about why the economy is slowing for one thing consumers aren't spending enough because they don't have enough.

In the because it's not a whole lot of.

Income growth just hasn't been much income created over the last couple years consumers themselves are starting to get a little but more anxious.

And starting to so let's wait and see what's happening with the economy before we go out there and make these major -- soft consumer confidence soft consumer spending it's an endless cycle it feeds on itself.

And the economy can't recover if that's the case.

Consumer spending is the main engine for economic growth and if consumers aren't spending businesses can expand and.

I -- manufacturers are worried about.

Slowing global global sales still worried about what's happening with tax and regulatory policy and I think so much is on hold right now until the election takes place.

The manufacturers are really uncertain there's a lot of anxiety out there.

Anxious about what we'll have a new tax rates to federal spending to health care cost a cloud of uncertainty that darken the business climate given those problems -- I understand -- folks would be reluctant to hire more workers -- expand their operations employers also -- what they see as burdensome regulations not just the number -- regulations but.

In some ways the attitude of the regular regulators has become more antagonistic.

Manufacturers that I talked to are very worried about the regulatory onslaught this coming away.

They're very worried about the fact that after the election that could be even more regulations coming down upon.

If mr.

Obama wins the last time -- president facing reelection confronted unemployment this I was Ronald Reagan in 1984.

He got reelected with a peak of ten point 8% unemployment but with very different policy more than what.

President Obama did a 10%.

But he deregulated cut taxes and -- on the private sector President Reagan -- -- leave.

Valued business is a little bit differently I think that you saw a much more of an embrace of the free market.

In terms of letting tax policy and regulatory policy helped to again -- an environment where by businesses to flourish.

Economists don't see things changing much the rest of the year with most projections for growth at about 2% or so at best.

As one critic put it today the recovery -- wind it.

And oxygen.

-- -- Jim thank you more on this for the panel Wall Street was not particularly but.

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